In a major enforcement action against organised financial crime, the administration has seized properties worth approximately ₹11.89 crore belonging to the kingpin and two key associates of an interstate fake insurance claims racket allegedly involving more than ₹100 crore. The seizure was carried out under the Gangsters Act following orders from the district magistrate, with joint teams of the police and revenue department executing the operation across Sambhal, Badaun, Gautam Buddh Nagar (Noida) and Varanasi.
Officials said the attached assets include residential houses, commercial properties and other immovable assets. Preliminary investigations indicate that these properties were acquired using proceeds generated from fraudulent insurance claims. Authorities described the action as a decisive step aimed at dismantling the financial backbone of an organised criminal network involved in systematic insurance fraud.
Certified Cyber Crime Investigator Course Launched by Centre for Police Technology
Insurance in the names of the poor, payouts pocketed by the gang
According to investigators, the racket operated through a carefully planned network that exploited vulnerable sections of society. Insurance policies were taken out in the names of poor, illiterate and destitute individuals, often without their full understanding. In several cases, documents of critically ill or already deceased persons were misused to secure insurance coverage.
Police said the accused themselves paid the insurance premiums to keep the policies active. After the death of the insured—or by producing forged death-related documents—the gang filed claims by posing as nominees. Once the payouts were released, the money was transferred into multiple bank accounts and distributed among the members of the syndicate.
Network spread across several states
Investigations have revealed that the racket was not confined to a single district or state. While several cases have been registered in western Uttar Pradesh, links have also emerged in Uttarakhand and Jharkhand. Within Uttar Pradesh, the gang was active in districts including Sambhal, Badaun, Moradabad, Amroha, Bulandshahr and Varanasi.
Officials said more than 64 accused have been arrested so far and sent to jail in connection with the scam. Several others are under scrutiny, and further arrests are likely as investigators continue to trace financial trails and identify additional beneficiaries of the fraud.
Strict action under Gangsters Act
Given the organised and professional nature of the crime, the administration has approved action against 25 members of the syndicate under the Gangsters Act. Cases have been registered under relevant provisions, enabling authorities to attach properties believed to have been acquired through illegal means.
Officials said the objective of invoking the Gangsters Act is not limited to prosecution alone but also to ensure that crime-generated wealth is seized, thereby preventing its reinvestment into further illegal activities.
Public announcement, properties sealed
Following court directives, attachment proceedings were carried out in Babrala and Varanasi, among other locations. During the operation, police and administrative officials conducted public announcements before sealing the properties, in accordance with legal procedures.
Authorities said the public nature of the action was intended to send a clear message that those involved in organised economic offences would not be allowed to retain assets acquired through fraud.
Further action to continue
Police and administrative officials have stated that action in the insurance scam case is far from over. Investigators are currently identifying additional properties, bank accounts and financial instruments linked to the accused, which may be attached in subsequent phases of the probe.
Officials said efforts are also underway to map the full structure of the racket, including facilitators who may have assisted in documentation, banking transactions or claim processing. The administration reiterated that a zero-tolerance approach will be maintained against organised financial crimes, and that those found guilty will face strict legal consequences.
The case is being seen as one of the largest fake insurance claim crackdowns in the region, underscoring the authorities’ resolve to curb large-scale financial fraud and restore confidence in insurance and financial systems.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
